Which component of a typical expatriate compensation package compensates the expatriate for having to live in an unfamiliar country isolated from family and friends,deal with a new culture and language,and adapt to new work habits and practices?
A)Benefit
B)Cost-of-living allowance
C)Base salary
D)Foreign service premium

Question

Quizplus · Accepted Answer

The foreign service premium is a component of a typical expatriate compensation package that compensates the expatriate for the challenges of living in an unfamiliar country, dealing with a new culture and language, and adapting to new work habits and practices. It is a form of hardship pay that acknowledges the additional stress and strain of working and living outside of one's home country. Benefits, cost-of-living allowances, and base salaries are all components of expatriate compensation, but they do not specifically address the challenges of assignment in a foreign posting.

Which Component of a Typical Expatriate Compensation Package Compensates the Expatriate